Lanxess to Build New Plastics Plant in China; Invests €20 Million

Lanxess AG is strengthening its presence in China by building a new plant for high-performance plastics in Changzhou for around €20 million.

From Q2 2019, the compounding plant is to produce up to 25,000 metric tonnes of Durethan- and Pocan-branded high-tech plastics for the automotive sector and the electric and electronics industry.

With the investment, Lanxess is also significantly strengthening the Changzhou site. At the Binjiang Chemical Park in Changzhou, the group already has plants for leather chemicals and synthetic rubber, which currently employ around 350 people. The new plant for high-performance plastics will create 35 additional jobs.

Lightweight solutions for modern mobility

The automotive industry is the most important customer for Lanxess’ high-performance plastics. The innovative materials allow the construction of components to replace metal parts in motor vehicles and thus contribute to reducing weight, fuel consumption and emissions. Lanxess plastics are used, for example, in engine applications, door structures, pedals, front ends and cockpit cross members. Depending on the part, the lightweight construction can make a weight-saving of up to 50 percent.

“China is the largest automotive market in the world and is setting the pace for electromobility. We want to support growth in this important region and are expanding our presence in the high-performance plastic segment,” said Matthias Zachert, chairman of the Lanxess board of management.

“At the same time, we are expanding our global network of compounding plants with the new production site and are continuing to consistently focus our portfolio on high-value plastics,” added Michael Zobel, head of the high-performance materials business unit, Lanxess.